You Own 30% of Westcoast,Inc

question 68

Multiple Choice

You own 30% of Westcoast,Inc. You have decided to retire and want to sell your shares in this closely held,all equity firm. The other shareholders have agreed to have the firm borrow $2 million to purchase your 2,000 shares of stock. What is the total value of this firm today if you ignore taxes?

• A) $4.58 million
• B) $5.08 million
• C) $5.40 million
• D) $5.76 million
• E) $6.67 million

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Definitions:

Conclusion

The final part of something, such as an argument or text, summarizing the main points or deduced results.

Assumption

A thing that is accepted as true or as certain to happen, without proof.

Justification

A reason or argument that explains why a particular action, belief, or statement is reasonable or necessary.

Premise

A prior assertion or claim from which another conclusion is drawn or follows logically.